Savings Goal Calculator
The monthly amount to save to reach a goal by a date.
How much you have set aside today.
Monthly contribution needed
- Total contributed
- $32,790.96
- Investment growth
- $7,209.04
- Time to goal
- 5 yr 0 mo
- Number of contributions
- 60
Estimate. Assumes a constant return and a contribution at the end of each month.
How the savings goal calculator works
This tool answers one question: how much do you need to put away each month to hit a target by a chosen date? It assumes your current balance and every future contribution earn the same steady return, and it solves for the single monthly amount that gets you there.
The math splits your savings into two growing pieces. Your current balance compounds on its own to a future value of current * (1 + r)^n, where r is the monthly return (the annual rate divided by 1200) and n is the number of months. Your monthly contributions form an annuity whose future value is PMT * ((1 + r)^n - 1) / r. Setting the sum of those two equal to your goal and solving for the payment gives:
PMT = (goal - current * (1 + r)^n) * r / ((1 + r)^n - 1)
When the return is 0%, there is no growth to lean on, so the payment is simply the remaining gap spread evenly: PMT = (goal - current) / n. And if your current balance alone grows past the goal, the required contribution is zero rather than a negative number.
Worked example
Suppose you want 50,000 in 5 years, you already have 10,000 saved, and you expect a 5% annual return.
- Monthly return:
r = 5% / 12 = 0.0041667 - Months:
n = 5 * 12 = 60 - Your current balance grows to
10,000 * 1.005^60 = 10,000 * 1.283359 = 12,833.59 - Remaining gap to fund from contributions:
50,000 - 12,833.59 = 37,166.41 - Required monthly contribution:
PMT = 37,166.41 * 0.0041667 / (1.283359 - 1) = 546.52
So you would set aside 546.52 each month.
- Monthly contribution: 546.52
- Total contributed: 32,790.96 (60 payments)
- Investment growth: 7,209.04
Check it: starting balance 10,000 + contributions 32,790.96 + growth 7,209.04 adds up to the 50,000 goal. For comparison, with no return at all you would need (50,000 - 10,000) / 60 = 666.67 a month, so the assumed 5% return saves you about 120 each month.
How to use it
- Enter your savings goal, the amount you want to reach.
- Enter your current savings, the balance you are starting from.
- Enter the expected annual return as a percent, for example 5 for 5%, not 0.05.
- Set the time to goal in years.
- Read the monthly contribution and how much of the final total comes from your own money versus growth.
Limitations
This is an estimate, not financial advice. It assumes a single fixed return for the whole period and equal monthly contributions, so it does not model market ups and downs, a return that changes over time, taxes, fees, or inflation eroding your goal’s real value. Contributions are assumed at the end of each month. Use the figure as a planning target, and revisit it as your balance grows and your assumptions change.
Frequently asked questions
How is the required monthly contribution calculated?
The calculator treats your savings as two parts that both earn the same return. Your current balance grows on its own to a future value, and your monthly contributions form an annuity that grows alongside it. It solves the standard future-value identity for the one unknown, the level payment, so that the two parts together land exactly on your goal by the end of the term.
What if my current savings already reach the goal?
If your starting balance grows to your goal on its own over the period, no contribution is needed and the result is zero. The calculator never returns a negative contribution, so a balance that overshoots the goal simply shows zero rather than telling you to withdraw.
Does the expected return really matter that much?
It can change the answer a lot over long horizons. A higher return means your existing balance and each contribution do more of the work, so you need to save less each month. At a 0% return the math is just the gap divided by the number of months, with no help from growth.
When are contributions assumed to be made?
At the end of each month (an ordinary annuity). Contributing at the start of each month instead would give every payment one extra month of growth, lowering the required amount slightly. The end-of-month assumption is the conservative, more common convention.
Is the return guaranteed?
No. The expected annual return is an assumption, not a promise. Real returns vary year to year and can be negative. Treat the result as a planning target and revisit it as your balance and the markets change.